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State Tax Liens

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Anonymous
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State Tax Liens

My DH had difficult times back in 1996 and when he moved from California to IL did not file his Calif taxes. Several years later they filed tax liens against him for approx $25,000. Their explanation is that if you don't file, they assume that you made a ridiculous amount of money and that you in turn owe a ridiculous amount of money. Since then we have gone on a payment plan to pay the $2,000 that he actually owes. My question is this: all three CRA's are reporting these huge tax liens in dollar amounts that he doesn't owe. California says their is nothing that they can do about it. Isn't it their obligation to report accurately? These tax liens are not accurate!! Any help would be greatly appreciated.
Message 1 of 4
3 REPLIES 3
Anonymous
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Re: State Tax Liens

I would try sending them documentation of the actual amount owed. 
 
FYI, I don't think that the amount of the lien makes any difference in computing FICO scores.  Just having it on the report keeps your score low.  I've had a $500 lien on one of my reports for 13 years and it has kept my mid-score at a subprime level the whole time.
Message 2 of 4
Anonymous
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Re: State Tax Liens

I did send documentation to the CRA but it still came back as verified. I wonder if they just verify that there was a lien placed, if that is the case then it will never go away. Once it is paid (the $2000) I wonder if it will show the lien paid in full even though we won't be paying the $25000 that the lien is for?
Message 3 of 4
Anonymous
Not applicable

Re: State Tax Liens

I would investigate with a lawyer regarding the $25K that thay can substantiate - www.naca.org may be able to help.
 
Once paid it should report 'released' - but maybe,just maybe - because of the $25 placement you might (emphasize MIGHT) be able to have them remove it once paid.  Mine was for the EXACT amount due (at the time) - not more.  In order to clear you have to pay any further interest so there is no point to placing a max amount...
Message 4 of 4
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